INDIVIDUAL PROJECT 1
Assuming the role of an accountant, your new client Suzie Maye needs help in setting up basic accounting practices for her business. You begin by showing her how to set up a transaction analysis based on the accounting equation of Assets = Liabilities + Owner’s Assets. You show Suzie how to enter the various assets, liabilities and owner’s assets into the transaction analysis template demonstrating the balance based on the equation. This will help Suzie understand that through this process every financial transaction that occurs in her business must be reconciled on each side of the equation.
Please record the following transactions using transaction analysis. Please use this template to complete this assignment.
|
1-May |
Owner, Suzie Maye, invested $7,000 in her business, Matrix Consulting. |
|
2-May |
Company paid monthly rent, $900. |
|
3-May |
Company bought supplies on account, $600. |
|
5-May |
Company paid monthly advertising, $125. |
|
9-May |
Company performed services, $4,000. |
|
12-May |
Owner, Suzie Maye, withdrew $1,000 for personal use. |
|
15-May |
Company performed services on account for $5,400. |
|
17-May |
Company paid monthly salaries, $2,500. |
|
20-May |
Company made a payment on account, $600. |
|
23-May |
Company received $4,000 from a customer on account. |
|
26-May |
Company borrowed $5,000 from local bank. |
|
29-May |
Company bought equipment on account for $4,200. |
|
30-May |
Company paid monthly utilities, $275. |
INDIVIDUAL PROJECT 2
From the following information, please prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet for the month of May of the current year.
|
Cash |
$12,000 |
|
|
Accounts Receivable |
16,000 |
|
|
Supplies |
350 |
|
|
Equipment |
16,500 |
|
|
Notes Payable |
$13,000 |
|
|
Accounts Payable |
12,000 |
|
|
S. Jones, Capital |
18,000 |
|
|
S. Jones, Drawing |
550 |
|
|
Service Revenue |
6,000 |
|
|
Telephone Expense |
350 |
|
|
Rent Expense |
1,100 |
|
|
Advertising Expense |
2,150 |
|
|
$49,000 |
$49,000 |
some information about the Individual Project 2
Describe the effects of business transactions on the basic accounting elements: assets, liabilities, owners’ equity, revenues, and expenses.
Describe the language, concepts and use of financial accounts and reports.
Identify and use the sources of accounting data and information.
Identify the users of financial accounting information and the types of decisions made by users.
